According to the agency, Chinese company Anta Sports is assessing the chances of acquiring the German sportswear brand Puma. The company has reportedly engaged advisers to evaluate the potential deal.
Anta and its assets
Anta is one of the largest manufacturers of sportswear in Asia. In China it holds the rights to the brands Fila and Jack Wolfskin, and in 2019 the company bought Amer Sports, owner of Salomon and Arc'teryx, for $5.2 billion. Anta's market capitalization is around $31 billion.
Competitors and market reaction
Another Chinese manufacturer, Li Ning, also showed interest in Puma, but officially said that substantive negotiations did not take place. After reports about a possible deal, Puma's share price jumped by roughly 14% on November 27.
Puma's financial position
Puma was founded in 1948. Last year the company reported net profit of €281.6 million and sales of €8.8 billion; it employs about 22,000 people. The firm sponsors a number of sports teams, including Manchester City and the Portugal national team.
Recently Puma has been going through tougher times: this year its shares have fallen by about 62%, and its market value has dropped to around €2.5 billion. In July the company appointed a new CEO, who announced cuts of about 900 jobs, a focus on key categories and an overhaul of the marketing strategy.
Context
Anta has gradually expanded its portfolio through large acquisitions and rights to well-known brands, making it one of the main players in the Asian sportswear market. Puma, by contrast, has in recent years been trying to stabilize the business after a significant share-price drop and a change in leadership, so a potential bid from China could be part of a broader industry transformation.
